NY HOME IMPROVEMENT UPDATED FINAL EXAM
QUESTIONS AND ANSWERS SURE A+
✔✔Must a H.I. Contractor license be posted? - ✔✔Yes, it must be posted in the
Contractor's office where all consumers can see it, or show it to consumers upon
request.
✔✔Change of business address, ownership, management, or trade name must be
reported to DCA within how many days? - ✔✔10 days
✔✔How many business locations can a H.I. Contractor's license cover? - ✔✔One. A
seperate license is required for each place of business.
✔✔When and how does a H.I. Contractor's license get renewed? - ✔✔About three
months before license expiration, DCA will mail a renewal package. It can be renewed
by mail, online, or in person at the DCA Licensing Center.
✔✔May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the
home owner (customer)? - ✔✔No, The prime contractor must secure all necessary
permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the
contract in accordance with state and local building laws.
, ✔✔How many years must a H.I. Contractor maintain copies of contracts, books of
account, and other records reflecting all transactions related to the home improvement
business? - ✔✔Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
✔✔What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - ✔✔The contractor may not use funds received to pay
expenses unrelated to the home improvement, unless the home improvement is
completed and all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
✔✔No work should be performed and no money should be paid until after the ____ day
cancellation period? - ✔✔3 days
✔✔Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ✔✔No, nor can they act as an agent for, advertise, or promote loans.
✔✔Must a contractor furnish a consumer with a written estimate? - ✔✔Yes, if the
consumer requests one.
✔✔Can a Contractor charge a fee for an estimate? - ✔✔Yes, but they must disclose the
fee to the consumer before providing the estimate and must include and itemize the fee
in the total estimated contract price.
✔✔What is the fine for false or fraudulent representation? - ✔✔A contractor or
salesperson who lies is subject to fines of up to $500 for each separate
misrepresentation.
✔✔What becomes of the contract entered into after misrepresentations? - ✔✔It may be
declared null and void, and contractor may be ordered to pay restitution to the
consumer.
✔✔What is the prosecution and fine penalties for operating a home improvement
business without a license or with a suspended or revoked license? - ✔✔Guilty of a
misdemeanor and may be prosecuted criminally and subject to up to six (6) months
imprisonment and/or $1,000 in fines.
✔✔What is the prosecution and fine penalties for engaging in unlicensed activity or
aiding and abetting the operation of an unlicensed person or business? - ✔✔civil
prosecution and $100 day fine.
✔✔Can the DCA padlock (close down) and confiscate (take) the tools and trucks used
in connection with unlicensed home improvement work? - ✔✔Yes!
QUESTIONS AND ANSWERS SURE A+
✔✔Must a H.I. Contractor license be posted? - ✔✔Yes, it must be posted in the
Contractor's office where all consumers can see it, or show it to consumers upon
request.
✔✔Change of business address, ownership, management, or trade name must be
reported to DCA within how many days? - ✔✔10 days
✔✔How many business locations can a H.I. Contractor's license cover? - ✔✔One. A
seperate license is required for each place of business.
✔✔When and how does a H.I. Contractor's license get renewed? - ✔✔About three
months before license expiration, DCA will mail a renewal package. It can be renewed
by mail, online, or in person at the DCA Licensing Center.
✔✔May a H.I. Contractor assign the task of getting permits, exemptions or C/O to the
home owner (customer)? - ✔✔No, The prime contractor must secure all necessary
permits, licenses, Certificates of Occupancy, or exemptions necessary to complete the
contract in accordance with state and local building laws.
, ✔✔How many years must a H.I. Contractor maintain copies of contracts, books of
account, and other records reflecting all transactions related to the home improvement
business? - ✔✔Six (6) years or the length of time of any contractual guarantee,
whichever is longer.
✔✔What percentage of a customers payments can a Contractor use for administrative,
overhead, and other projects? - ✔✔The contractor may not use funds received to pay
expenses unrelated to the home improvement, unless the home improvement is
completed and all expenses for direct labor, material, and subcontractors related to the
home improvement have been paid.
✔✔No work should be performed and no money should be paid until after the ____ day
cancellation period? - ✔✔3 days
✔✔Can a H.I. Contractor arrange a home loan or a home improvement loan for a
consumer? - ✔✔No, nor can they act as an agent for, advertise, or promote loans.
✔✔Must a contractor furnish a consumer with a written estimate? - ✔✔Yes, if the
consumer requests one.
✔✔Can a Contractor charge a fee for an estimate? - ✔✔Yes, but they must disclose the
fee to the consumer before providing the estimate and must include and itemize the fee
in the total estimated contract price.
✔✔What is the fine for false or fraudulent representation? - ✔✔A contractor or
salesperson who lies is subject to fines of up to $500 for each separate
misrepresentation.
✔✔What becomes of the contract entered into after misrepresentations? - ✔✔It may be
declared null and void, and contractor may be ordered to pay restitution to the
consumer.
✔✔What is the prosecution and fine penalties for operating a home improvement
business without a license or with a suspended or revoked license? - ✔✔Guilty of a
misdemeanor and may be prosecuted criminally and subject to up to six (6) months
imprisonment and/or $1,000 in fines.
✔✔What is the prosecution and fine penalties for engaging in unlicensed activity or
aiding and abetting the operation of an unlicensed person or business? - ✔✔civil
prosecution and $100 day fine.
✔✔Can the DCA padlock (close down) and confiscate (take) the tools and trucks used
in connection with unlicensed home improvement work? - ✔✔Yes!
